Charted: Ripple (XRP) Trimming Gains, Why It Could Decline Heavily
Ripple failed to stay above $0.5550 and declined over 10% against the US Dollar. XRP price could accelerate lower if it fails to stay above the 100 SMA (H4) and $0.4850.
- Ripple started a fresh decline after it struggled to clear the $0.6500 resistance against the US dollar.
- The price is now trading well below $0.5500 and it is testing the 100 simple moving average (4-hours).
- There was a break below a major bullish trend line with support near $0.5300 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair could either decline further below $0.4800 or it might start a fresh increase from the 100 SMA (H4).
Ripple’s XRP Price is Testing Key Support
After a close above the $0.5000 level, ripple’s XRP price started a steady increase. The price cleared the $0.5500 and $0.5720 resistance levels. It even broke the $0.6000 level and settled nicely above the 100 simple moving average (4-hours).
It topped near the $0.6445 level and recently started a fresh decline. There was a break below the $0.6000 and $0.5800 support levels. The price traded below the 50% Fib retracement level of the upward move from the $0.4507 swing low to $0.6443 high.
There was also a break below a major bullish trend line with support near $0.5300 on the 4-hours chart of the XRP/USD pair. The pair is now trading well below $0.5500 and it is testing the 100 simple moving average (4-hours).
Source: XRPUSD on TradingView.com
It is also testing the 76.4% Fib retracement level of the upward move from the $0.4507 swing low to $0.6443 high. If there is a downside break below the $0.4850 support and the 100 SMA, there is a risk of a sharp decline.
The next major support is near the $0.4500 level. Any more losses may possibly open the doors for a move towards the $0.4000 support level.
Fresh Increase in XRP?
If ripple stays above the $0.4850 support and the 100 SMA, there are chances of a fresh increase. An initial resistance is near the $0.5250 level and a connecting bearish trend line.
A clear break above the trend line resistance could push the price above $0.5500. The next major resistance for the bulls could be $0.6000.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well below the 50 level.
Major Support Levels – $0.4850, $0.4500 and $0.4000.
Major Resistance Levels – $0.5250, $0.5500 and $0.6000.
OhNoCrypto
via https://www.ohnocrypto.com
Aayush Jindal, @KhareemSudlow
